Combining LGPS pensions

robaber

Hello

I have recently changed employment between local authorities. 

I have been considering combining my previous and current LGPS pensions.

Looking at some forums, it seems key questions in this decision are whether you came under the final salary scheme before 2014 and whether your previous or new salary, is higher. As this will be the basis of calculating, this part of your pension. 

In my case, I was employed with the previous local authority between 2011-2020. Therefore I made contributions to the final salary scheme between 2011-2014. My salary at the point of leaving was £35,000. 

My current salary is £45,000, raising to £52,000 over the next 5 years. I anticipate a promotion, at some point, with my new employer. 

My new employer, has helpfully given me a projection

of my final salary, at the point I left my previous employer (£35,000), adjusted to an estimate of future annual increases in line with CPI. They have estimated a salary of £39,000. I appreciate that this a bit of a guess on their part. 

My understanding is that if I keep my pensions separate, my contributions for 2011-2014, will be based on my previous salary (£35,000), adjusted in line with future CPI rates. 

If I join my pensions, they will be based on my new salary, which will be a minimum of £52,000. On the balance of probability, it seems unlikely that my previous salary, will overtake this.

Therefore combining my pensions, would seem the best option for me. 

I can see there are a few other factors to consider, including a lower death in service payment to my wife, if I were to combine the pensions. However, I have life insurance and so this is not a significant factor for me. 

Is there anything else I am missing, for my decision? 

Many thanks for any advice

Rob

Silvertabby

Classic reason to combine - higher salary.

Why do you think any death in service benefits would be more if you left your records separate?  Your wife would get 3 X your pensionable salary from your current employment, plus a survivors pensions from both schemes - which would be less, as her benefits from your deferred record would be calculated on your old, lower, salary.

robaber

Silvertabby said:

Classic reason to combine - higher salary.

Why do you think any death in service benefits would be more if you left your records separate?  Your wife would get 3 X your pensionable salary from your current employment, plus a survivors pensions from both schemes - which would be less, as her benefits from your deferred record would be calculated on your old, lower, salary.

I see. I had thought that if I combine, then she would only get a survivors pension from my current employer.
That's good to know, thanks. 

Silvertabby

robaber said:

Silvertabby said:

Classic reason to combine - higher salary.

Why do you think any death in service benefits would be more if you left your records separate?  Your wife would get 3 X your pensionable salary from your current employment, plus a survivors pensions from both schemes - which would be less, as her benefits from your deferred record would be calculated on your old, lower, salary.

I see. I had thought that if I combine, then she would only get a survivors pension from my current employer.
That's good to know, thanks. 

Yes, she would - but it would be based on all of your service, using your higher pensionable pay.